Foreign earned income exclusion

The foreign earned income exclusion applies to U.S. citizens working in a foreign country and helps equalize the tax burden that they face. The foreign earned income exclusion allows eligible taxpayers to avoid paying federal income tax on their foreign earned income. To qualify for the exclusion, the taxpayer must be either a “bona fide resident of the foreign country” or present in the country for 330 days during any 12 consecutive months.